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Terra's Do Kwon Bail Status Overturned in Montenegro

source-logo  u.today 24 May 2023 13:07, UTC

In a surprise turn of events, the Montenegro High Court has reversed a previous decision permitting controversial Terraform Labs co-founder Do Kwon to be released on bail.

This decision also encompasses Han Chong-joon, Kwon's former CFO, who both face potential jail time on accusations of document forgery. As reported by Bloomberg, both South Korea and the United States are seeking extradition.

Court spokeswoman Marija Rakovic informed Bloomberg that Kwon would remain behind bars while the basic court is set to make another decision in light of this high court ruling.

She further clarified that there are no legal restrictions on the number of motions that can be made between the judges regarding the bail decision for the two South Korean nationals.

It's worth mentioning the court's original decision was to place both Kwon and Han under house arrest, monitored by police, for bail of more than $400,000 each.

This happened the day after Kwon's initial court hearing following his arrest at a Montenegrin airport in March.

The Terra founder, a South Korean native, allegedly attempted to flee to Dubai in order to escape jail.

As reported by U.Today, Kwon could face up to 40 years in prison in South Korea due to his role in the Terra Luna Coin incident and the $40 billion TerraUSD collapse, with South Korean and U.S. authorities currently competing for his extradition from Montenegro.